As there are some misinformation and confusion, I try to summarize a few points: What is it: Pillar 1 tries to tax the digital economy (FAANG etc., scope still under heavy discussion). The goal is to prevent a digital tax in each country. Basically, the profit will be taxed in market states (i.e. Google pays tax in Germany). Pillar 2 tries to impose a global minimum tax rate. Countries levy a top-up tax on the foreign operations of their headquarter companies (i.e. difference between minimum global tax rate and effective tax rate) Who will be affected: This is different for Pillar 1 and Pillar 2 but both only want to tax multinational corporations defined for example by sales (> EUR 750 m turnover for pillar 2) and only if you have some minimum foreign operations. So your typical small company is not affected at all. What's so genius about this project: The OECD is very worried that there are still some loopholes, so they want to close them. They do it by basing the effective rate on IFRS income (or US GAAP) with some adjustments. IFRS income is also the basis they report to shareholders, so companies have a problem: Higher IFRS -> more taxes to pay How do the countries ensure that all countries participate: You don't have to impose a global minimu rate. If one country doesn't do it, other countries can levy the top-up tax through a different system (undertaxed payments rule for those who want to look it up). What's the position of the Biden Administration: The USA has their own system called GILTI which is accepted as well. It looks like the USA gets away again by participating but in the end, they will decide we won't follow the rules. Is this fair? Opinions differ. Why should highly developed economies like Ireland, Switzerland, Singapore not be able to set their own tax rates. They invest a lot in the education of their people. And if you think tax is fair, you don't know life. What countries will do is increase tax on profit but decrease other "taxes" (i.e. price on mining rights, social contributions etc.). If you have questions, AMA. I devote a large part of my life on this project.